Shares of index heavyweight Reliance Industries Ltd (RIL) hit a new all-time high with gains of over 2% In Thursday’s opening deals, 2,775 on the BSE supported the benchmark index. RIL’s market capitalization eroded 18.7 lakh crore on BSE.
Reliance IndustriesThe stock has been gaining momentum over the past few sessions and has gained around 7% in the last five trading sessions as compared to the 2% fall in the benchmark Sensex.
Earlier this week, Reliance Brands Ltd said it would acquire a majority stake of 51% in leading couture house Abu Jani Sandeep Khosla (AJSK) for an undisclosed amount. RBL, a subsidiary of Reliance Retail Ventures (RRVL), is expanding its game in the luxury and retail landscape.
According to analysts, as crude oil prices remain positive in Q4 FY22, the market is expecting a strong Q4 from the company, especially on the improvement in Gross Refining Margin (GRM) in Reliance Petrochemical business. In addition, Reliance Jio’s results are also expected to improve on a potential increase in Average Revenue Per User (ARPU).
The Mukesh Ambani-led conglomerate’s new energy initiatives have also prompted analysts to be bullish on the stock. The people of Motilal Oswal said in a recent report that RIL has taken a step forward by announcing its vision to replace the fossil fuels used in the Jamnagar campus with renewable energy, thereby utilizing the synthesis gas from its gasifiers for many years. Can be used to manufacture organic chemicals.
“A decade ago, investors had concerns over RIL’s investment in both Jio and Retail. However, RIL transformed both the businesses in such a way that they stood at par with the behemoth standalone segment in terms of EBITDA contribution. In fact, owing to better prospects, Jio and retail currently account for two-thirds of the total valuation,” the note said.